SUPPORT AND OUTREACH PROGRAMME FOR MSME

Nov. 3, 2018

The Prime Minister Narendra Modi, launched a support and outreach programme for the MSME sector. Under it 12 key initiatives were unveiled to help the growth of MSMEs across the country.

About:

There are 5 key categories for facilitating the MSME sector which include (1) Access to Credit, (2) Access to Market, (3) Technology Upgradation, (4) Ease of Doing Business, and (5) Sense of Security for Employees.
The 12 initiatives announced will address each of these five categories.
Implementation of this outreach programme will be intensively monitored over the next 100 days.

Category

List of 12 initiatives

Access to Credit

1. Through 59-minute loan portal, Loans upto Rs. 1 crore to MSMEs can be granted in-principle approval in just 59 minutes. Link to this portal will be made available through the GST portal.

2. A 2% interest subvention for all GST registered MSMEs has been announced on fresh or incremental loans. For exporters who receive loans in the pre-shipment and post-shipment period, the interest rebate has been increased from 3% to 5%.

3. All companies with a turnover of more than Rs. 500 crores will be compulsorily brought on the Trade Receivables e-Discounting System (TReDS).

Access to Markets

4. Public sector Undertakings (PSUs) companies will have to compulsorily procure 25%, instead of 20% of their total purchases from MSMEs. Out of the 25%, 3% must now be reserved for women entrepreneurs.

5. All PSUs of the Union Government (including their vendors) must now compulsorily be a part of Government-e-marketplace (GeM). More than 1.5 lakh suppliers have now registered with GeM, out of which 40,000 are MSMEs.

Technology Upgradation

6. Tool rooms across the country are a vital part of product design. Thus, 20 hubs will be formed across the country, and 100 spokes in the form of tool rooms will be established.

Ease of Doing Business

7. Clusters of pharma MSMEs will be established. 70 % cost of establishing these clusters will be borne by the Union Government.

8. Government Procedures will be simplified. The return under 8 labour laws and 10 Union regulations must now be filed only once a year.

9. The establishments to be visited by an Inspector will be decided through a computerised random allotment.

10. Presently, an entrepreneur needs two clearances namely, environmental clearance and consent for establishing a unit. From now onwards, under air pollution and water pollution laws, now both these have been merged as a single consent.

11. Under a new Ordinance brought, entrepreneur can correct minor violations under the Companies Act through simple procedures, instead of approaching courts.

Social Security for MSME Sector Employees

12. A mission will be launched to ensure that they have Jan Dhan Accounts, provident fund and insurance.

Source : PIB